Cal reported the following itemized deductions on his 2015 tax return. His AGI for 2015 was $85,000. The mortgage interest is all qualified mortgage interest to purchase his personal residence. For AMT, compute his total itemized deductions.
A) $0.
B) $17,700.
C) $25,700.
D)$33,600.

Question

Cal reported the following itemized deductions on his 2015 tax return. His AGI for 2015 was $85,000. The mortgage interest is all qualified mortgage interest to purchase his personal residence. For AMT, compute his total itemized deductions. 
A) $0. 
B) $17,700. 
C) $25,700. 
D)$33,600.

Quizplus · Accepted Answer

Cal's itemized deductions are as follows:
- State and local taxes: $8,000
- Mortgage interest: $10,000
- Charitable contributions: $7,700
Total itemized deductions = $8,000 + $10,000 + $7,700 = $25,700
Since his AGI is below the threshold for AMT, there is no adjustment necessary and his total itemized deductions for AMT are also $25,700.

Cal Reported the Following Itemized Deductions on His 2015 Tax